The status quo of the domestic apparel industry: high inventory sales risk

Since 2010, domestic clothing sales prices have generally increased by 10% to 20%, which has led to a substantial increase in the inventory of clothing companies that are pursuing gross margins, a sharp drop in inventory turnover, hidden sales risks, and continued profitability. affected.

Driven by the upgrading of domestic consumption structure, the apparel industry has achieved rapid development in recent years.

According to statistics from the Ministry of Industry and Information Technology, from January to November 2010, the accumulated investment of the domestic apparel industry increased by 29.99% year-on-year.

After experiencing the global financial crisis in 2008, the profitability of the domestic apparel industry has continued to improve. As of the end of September 2011, there were 10,300 garment companies above the national scale (annual sales income of over 20 million yuan). The number of loss-making enterprises was 1,327, a decrease of 214 from February 2011.

According to the classification methods commonly used in the investment industry, in addition to textile manufacturing and home textiles, the current domestic garment industry can be divided into men's wear, women's wear, casual wear, children's wear, footwear, socks and hats.

The in-line development of R&D design and marketing channels is the core competitiveness of apparel companies. On the one hand, apparel companies should increase investment in R&D and design. On the other hand, they should increase the average sales and sales of single stores (sales outlets). ability.